Daily Dupaco

Monday, January 09, 2017

Fruit cake and taxes

The holidays are over, and we face the New Year with renewed energy and focus. The same cannot be said about the tax code. Within a few weeks, we will be inundated and buried under a cascade of 1099s, W-2s, interest statements, Schedule Cs and 1040s produced from our incomes, required minimum distributions, pensions, mutual funds, stocks, Social Security, etc.

As we assemble these documents into a neat little pile, it is a good time to remind ourselves of that fruit cake we received from Great-Aunt Beatrice. You know…it arrived shortly before Thanksgiving, resigned to its space on the counter top between the toaster and the telephone.

The income received from interest in dividends, capital gains, income, salary and interest paid out over the course of the year is a lot like the fruit cake. Each ingredient might be good as it stands by itself; however, if mixed together it becomes a tangled nutty slab of waxy green and red fruit!

That’s why it’s important to review the vehicles and investments from which the income is received. If you find yourself owing the IRS, perhaps moving a portion of your portfolio to municipal bonds—on which the income is not taxed federally—will alleviate this burden. Or, maybe a tax-deferred vehicle, such as an IRA, to limit the amount of income might be suitable.

The bottom line is that no matter what your income goal or tax situation is, the team at Dupaco Financial Services has a solution for you.

by Michael Poppen

Securities and Advisory services offered through LPL Financial, a Registered Investments Advisor. Member FINRA/SIPC Insurance products offered through LPL Financial or its licensed affiliates. Dupaco Community Credit Union and Dupaco Financial Services are not registered broker/dealers and are not affiliated with LPL Financial.

The investments products sold through LPL Financial are not insured Dupaco Community Credit Union deposits are not NCUA insured. These products are not obligations of Dupaco Community Credit Union and are not endorsed, recommended or guaranteed by Dupaco Community Credit Union or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.

Not NCUA Insured – Not Credit Union Guaranteed – May Lose Value

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: Iowa, Wisconsin and Illinois.

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